UK dividends per share (DPS) forecasts have accelerated in the last few months, gaining 4% since November, while EPS estimates have remained volatile, with mid-caps leading the way. Since DPS upgrades often correspond to stock price outperformance, Morgan Stanley analysts Graham Secker and Hanyi Lim recommend screening for low payout ratios as a way to generate new ideas. DPS increases tend to cause stock outperformance “Historically, stocks that have posted the strongest dividend growth have also seen the best relative price performance,” they write. “This relationship has also been present over the last three months – for example the quintile…